Krasnodar, Russia (November 9, 2023): Magnit, one of Russia’s leading retailers, finalized the deal to acquire the KazanExpress marketplace and began integrating this platform for the purpose of using it to launch its own marketplace – Magnit Market.

Under the deal, Manit received 100% of shares of KazanExpress LLC as well as rights to the intellectual property and all infrastructure of KazanExpress (tech platform, pickup points, warehousing facilities, and truck fleet). The transaction has now been approved by the Federal Antimonopoly Service of Russia.

The acquisition of KazanExpress will enable Magnit to promptly enter the fast-growing marketplace segment, which is a new business area for the Company, and capture a significant market share while spending less time and other resources compared to launching its own marketplace from scratch.

KazanExpress will continue operating within Magnit as a separate business unit under the leadership of the current management team. However, within the next few months, its application, website, pickup points, warehousing facilities, and trucks will be rebranded to Magnit Market. In the future, the KazanExpress app will be integrated into Magnit’s OMNI app.

In the course of integration, Magnit and KazanExpress will focus on exploring synergies in commercial conditions and category management to take advantage of the Company’s purchasing power in FMCG categories and offer best prices to the marketplace’s clients. Moreover, the Company will implement a number of preparatory activities and projects necessary for the effective rollout of Magnit Market across the country.

Guvenc Donmez, Magnit’s Chief E-Commerce Officer:

E-com remains one of the fastest-growing retail segments and already accounts for a significant share of non-food retail. We want to be a prominent player in this market, and so have decided to launch our own marketplace. Having closed the KazanExpress deal, we now begin integrating it and preparing the platform for rollout under the Magnit Market brand. Magnit’s technological capabilities, logistics service, dozens of distribution centers, and the largest chain of stores in Russia, which will serve as a basis for an expansive network of pickup points, combined with IT solutions, infrastructure facilities, and the experienced team of KazanExpress, will help Magnit Market to become one of the leaders in e-commerce.

Magnit finalizes deal to acquire KazanExpress marketplace